There were two dividend cuts in the Canadian Edge How They Rate coverage universe last month, both of them foretold in the July Dividend Watch List.

Barrick Gold Corp (TSX: ABX, NYSE: ABX), the biggest gold producer in the world, reported the second-biggest quarterly loss in Canadian corporate history and slashed its quarterly dividend rate by 75 percent to USD0.05 per share from USD0.20.

The move will save the company about USD600 million per year as it cuts costs in the aftermath of a steep decline for the price of gold.

Barrick has reduced its long-term gold-price assumptions, with corresponding writedowns of assets.

The company posted a net loss amount of USD8.56 billion in the second quarter, with total impairment charges of USD9.3 billion. Nortel Networks Corp still holds the record for Canada’s worst quarterly loss, when it posted a loss of USD19.4 billion for the second quarter of 2001. Barrick also owns the fourth-largest loss, having taken a USD5.4 billion loss in the third quarter of 2009 when it unwound its hedge book.

Barrick also cut its cost guidance for the second time this year, and its reported all-in costs of USD919 an ounce were well below rivals. Between cost cuts and spending reductions, Barrick said it saved about USD2 billion in the first half of 2013. Adjusted net earnings of USD663 million, or USD0.66 per share, were actually ahead of expectations.

The company is also selling non-core assets. Canadian Natural Resources Ltd (TSX: CNQ, NYSE: CNQ) has agreed to buy Alberta energy assets for about CAD223 million, while Venturion Oil Ltd and Whitecap Resources Inc (TSX: WCP, OTC: SPGYF) are picking up others for CAD59 million and CAD174 million, respectively.

Much of the spending on the Pascua-Lama project has been deferred, but Barrick still has to prove it can finish building the mine without any more bad news. Construction remains suspended on the Chilean side as Barrick addresses water-management concerns. The company took a US$5.1-billion writedown on the project in the second quarter.

Despite the cost reductions and the dividend cut, Barrick’s balance sheet is still weak, burdend by USD15.8 billion of debt, though only USD1.8 billion is maturing between now and the end of 2015. Barrick Gold remains a sell.

Former CE Portfolio Holding Colabor Group Inc (TSX: GCL, OTC: COLFF) announced on June 17, 2013, that declarations of dividends going forward will coincide with management’s announcement of quarterly financial results.

On July 18, 2013, when it revealed second-quarter numbers, Colabor also announced a 66.7 percent reduction in its quarterly dividend to CAD0.06 per share from CAD0.18.

“The dividend level provides comfort to management with regards to the company’s ability to sustain this amount given the outlook of the organization,” said CEO Claude Gariépy.

Colabor reported a 0.5 percent increase in comparable sales, though total sales declined by 2.4 percent to CAD345.8 million.

Net earnings for the quarter of 2013 were CAD2.4 million, or CAD0.09 per share, down from CAD2.9 million, or CAD0.13 per share, a year ago.

Cash flow was CAD4.2 million, or CAD0.15 per share, compared to CAD7.6 million, or CAD0.33 per share, a year earlier. Colabor remains a sell.

Manitoba Telecom Services Inc (TSX: MBT, OTC: MOBAF) has earned its way off the Dividend Watch List with solid second-quarter numbers. The CAD520 million sale of Allstream, announced on May 24, 2013, had made the company a stronger, more focused enterprise.

Management declared a CAD0.425 per share quarterly dividend, consistent with the prior quarter’s rate, after reporting a 0.2 percent rise in revenue to CAD247.4 million. EBITDA ticked up 0.5 percent to CAD121.4 million, while free cash flow grew by 28 percent to CAD41.2 million.

The company also reported cost cuts totaling CAD19 million.

Wireless revenue was up 4.5 percent, while wireless subscriber data revenue surged by 21.9 percent. “Strategic” services revenue, including wireless, Internet (3.6 percent) and IPTV (4.1 percent) all grew. MTS increased the number of customers with bundled services by 5.1 percent to 99,418. Manitoba Telecom Services is now a hold.

Please note that, because of the volatile nature of commodity pricing, all Oil and Gas companies in the How They Rate coverage universe should be considered permanent members of the Dividend Watch List.

Here’s the rest of the Dividend Watch List. Not all members are sells, though the most conservative investors should avoid the lot of them.

Bonavista Energy Corp (TSX: BNP, OTC: BNPUF) reported a 4 percent increase in production volumes to 72,554 barrels of oil equivalent per day (boe/d) for the second quarter, despite scheduled and unscheduled plant turnarounds that impacted quarterly volumes by 950 boe/d. Current production is approximately 73,000 boe/d.

The company generated funds from operations of CAD123.1 million, or CAD0.63 per share, up 51 percent from CAD81.7 million, or CAD0.49 per share, a year ago. Revenue was up 26 percent to CAD244.9 million.

Management will declare Bonavista’s next dividend on Aug. 15, and it looks like it’ll remain steady. Hold.

Cathedral Energy Services Ltd (TSX: CET, OTC: CETEF) first-quarter funds from operations per share slid to CAD0.20 from CAD0.46 a year ago, as revenue declined 20.3 percent due to the slowdown in Canadian. This was offset somewhat by US production testing.

It’s still a volatile environment for Energy Services firms, and the company is coming off a fourth quarter where funds from operations declined by 61.7 percent. Hold.

Chorus Aviation Inc (TSX: CHR/B, OTC: CHRVF) cut its dividend in half on May 10, a direct consequence of its ongoing dispute with Air Canada (TSX: AC/A, OTC: AIDIF). But it remains on the List because the longer the dispute goes on, the bigger its potential liability to Air Canada should it not prevail on the merits in the arbitration process.

Chorus reduced the quarterly rate from CAD0.15 to CAD0.075 effective with the payment due in July in order to conserve cash.

Chorus has expressed confidence in its position but warned that an adverse outcome would result in it owing a significant retroactive payment to Air Canada, dating back to the start of 2010. An outcome has been delayed until late 2013.

The company will report second-quarter results on Aug. 14. Sell.

Data Group Inc’s(TSX: DGI, OTC: DGPIF) second-quarter revenue was down to CAD77.8 million from CAD82.6, and gross profit slipped to CAD19.7 million from CAD21.1 million.

Management maintained the CAD0.075 dividend rate for October payment, despite recording a net loss of CAD4.8 million.

Data Group continues to push an aggressive turnaround strategy focused on generating new revenue, cutting costs and reducing debt. Its attempt to evolve into a business process outsourcing provider faces significant challenges. Hold.

Eagle Energy Trust(TSX: EGL-U, OTC: ENYTF), a recent addition to the How They Rate coverage universe, is already seeing its dividend under pressure as a small producer in a tight environment.

The non-SIFT trust makes monthly declarations; the last one on June 14 was CAD0.0875, consistent with May’s. The next will occur on July 15.

First-quarter funds flow from operations grew by 30 percent year over year and 20 percent sequentially to CAD11.9 million, and costs declined by 37 percent. Encouragingly, management boosted full-year capital expenditure and funds flow guidance. Hold.

FP Newspapers Inc (TSX: FP, OTC: FPNUF) declared CAD0.05 per share monthly dividends in mid-July and early August, the latter announcement coinciding with management’s report of a slight uptick in second-quarter net income to CAD1.5 million, or CAD0.217 per share, from CAD1.3 million, CAD0.19 per share, a year ago.

FP LP, of which FP Newspapers owns 49 percent, reported a 2.6 percent decline in revenue and a 4.6 percent advertising slide. The slow deterioration of this business continues. Sell.

Freehold Royalties Ltd (TSX: FRU, OTC: FRHLF) saw a 4 percent increase in average production from its lands during the first quarter. But this was offset by a 10 percent decline in realized prices. Funds from operations slid 7 percent to CAD23.8 million.

The dividend was covered by free cash flow. And debt reduction continues. There’s little margin for error here, though improving differentials will continue to help support the dividend. Hold.

GMP Capital Inc(TSX: GMP, GMPXF) reported a 26.1 percent decline in first-quarter revenue to CAD48.8 million. The financial services firm posted a net loss of CAD0.02 per share due to, in management’s words, “the near-term impact of ongoing malaise in global markets.”

The payout ratio for the period soared to 192 percent. Hold.

Labrador Iron Ore Royalty Corp (TSX: LIF, OTC: LIFZF) declared CAD0.25 per share and CAD0.125 per share regular and special dividends on June 12, 2013, maintaining the payout practice established during the preceding six quarters.

Labrador has hired its own advisers to study strategic alternatives following Rio Tinto Plc’s (London: RIO, NYSE: RIO) announcement of a plan to study its Iron Ore Company stake. And it’s been reported that global resources giant Glencore Xstrata Plc (London: GLEN, OTC: GLCNF, ADR: GLNCY) is exploring the possibility of buying the asset.

Management has confirmed that bidding for IOC has reached the second stage, but it hasn’t held talks with parties involved. It’s possible that an eventual buyer will consolidate the IOC holding and Labrador, for tax reasons among other considerations.

The fate of the dividend is tied to what happens with the facility that generates Labrador’s cash flow. But if it sells itself all questions are answered. Hold.

New Flyer Industries Inc (TSX: NFI, OTC: NFYED) reported an 18.4 percent increase in second-quarter revenue to CAD268.7 million, primarily due to a 10.9 percent increase in bus deliveries. Free cash flow for the quarter was CAD9.2 million, up from CAD5.6 million

Management noted in its earnings release that “the current dividend rate is expected to be maintained” when the next declaration is made on Aug. 15.

A total bus order backlog of CAD3.7 billion represents an increase of CAD4 million during the quarter. But the key driver of long-term business health, spending by municipalities, remains pressured. Hold.

Northland Power Inc’s(TSX: NPI, OTC: NPIFF) capacity is up to1,319 net megawatts in operation, as four of six projects in its Ontario solar farm program came online. It also acquired rights to a majority stake in a 600 megawatt North Sea offshore wind farm.

Management announced acquisitions of a natural gas-fired and a biomass-fired power plant in April, demonstrating it has the balance-sheet strength to continue to grow. The plants should add to cash flow in the second half of 2013. Management still concedes, however, that the dividend won’t be covered by free cash flow until 2014. Hold.

Parallel Energy Trust’s(TSX: PLT-U, OTC: PEYTF) first-quarter average production of 6,803barrels of oil equivalent per day was below management’s forecast of 7,200 due to significant weather disruptions in January and February and underwhelming results from a new drilling technique. The payout ratio, however, declined to 92 percent from 139 percent in the fourth quarter.

This small producer already has one dividend cut under its belt. Until operations show a consistent track and the payout ratio comes down even more it remains on the List. Hold.

Penn West Petroleum Ltd (TSX: PWT, NYSE: PWE) announced a 48.1 percent cut in its quarterly dividend rate, from CAD0.27 to CAD0.14 effective with the third-quarter payment due in October.

Uncertainty over the strategic direction with new leadership in place and how the current dividend rate fits in this equation underpin Penn West’s continuing presence on the List. We have upgraded the stock to a speculative buy for aggressive investors who want to bet on its takeover potential. Buy under USD13.

Precious Metals & Mining Trust’s (TSX: MMP-U, OTC: PMMTF) manager, Sentry Investments Inc, announced on June 27, 2013, that Precious Metals & Mining’s monthly cash distribution “will be changed” from CAD0.07 per unit to CAD0.035 per unit.

This 50 percent cut is effective with the Aug. 15, 2013, payment to unitholders of record on July 31, 2013, and will remain at this level until further guidance is provided by Sentry.

The Sentry board made the move “given the current environment for gold mining equities,” which comprise the bulk of Precious Metals & Mining’s portfolio.

The price of bullion increased more than five-fold from 2003 to 2011. But major gold mining companies generated little to no free cash flow. And they’re likely to generate negative free cash over the next several years. Sell.

Ten Peaks Coffee Company Inc (TSX: TPK, OTC: SWSSF) posted solid numbers for the first half of 2013, with gross profit, net income and EBITDA all up over the same period last year. Cash from operations rose by 26 percent, allowing it to reduce debt and strengthen its balance sheet.

Ten Peaks continued to benefit from declining coffee commodity prices, which led to a drop in revenue but an even larger decrease in cost of sales.

Ten Peaks is adding market share on solid performance in the US, where volumes have grown 35 percent over the past three years. But coffee is a tough, volatile business, and it’s a hard model on which to base a dividend-paying business. Management will report first-quarter 2013 results on or about May 10. Hold.

Zargon Oil & Gas Ltd’s (TSX: ZAR, OTC: ZARFF) second-quarter production declined 3 percent to 7,392 boe/d compared to the first quarter, though funds from operations were up 15 percent sequentially and 29 percent year over year to CAD16 million.

The small oil and gas producer remains highly susceptible to fluctuating commodity prices, though management maintained the CAD0.06 monthly dividend rate for payments in August, September and October. Hold.